Abstract
In today’s dynamic economic climate, businesses are increasingly compelled to reassess their organisational strategies. This shift is driven by varied profitability across sectors, fluctuating market demands, evolving consumer preferences, and heightened sustainability imperatives. To stay competitive, many industries are embracing advanced technologies including big data, cyber-physical systems (CPS), blockchain, and cloud computing, which support sustainability, operations, and circular economy (CE). In the existing studies, there is a lack of a comprehensive framework integrating Industry 4.0 technologies with circular economy and sustainable manufacturing practices in developing countries. To fill this gap, this study investigates the intricate relationships between stakeholder’s commitment (SC), Industry 4.0 practices (I4P), and circular economy (CE). Findings reveal that, in Indian small and medium enterprises (SMEs), stakeholders’ commitment drives the implementation of Industry 4.0 practices for achieving a circular economy. The study underscores the role of sustainable manufacturing practices (SMP) in driving efficiency, minimising waste, and creating competitive advantages, thereby advancing CE goals. This study is useful for industry leaders, managers, and policymakers in understanding and improving Industry 4.0 adoption strategies.